Tribunal asserts jurisdiction over debtor in insolvency case. Interim Resolution Professional appointed.

The Tribunal confirmed its territorial jurisdiction over the respondent corporate debtor located in New Delhi. The application by the State Bank of India was deemed complete, leading to the initiation of the Corporate Insolvency Resolution Process. The Tribunal acknowledged the financial debt and default by the respondent, appointing Mr. Vivek Raheja as the Interim Resolution Professional. A moratorium was declared, and the IRP was tasked with specific duties under the Insolvency and Bankruptcy Code. Communication protocols were established, and the application was admitted, commencing the Corporate Insolvency Resolution Process against the respondent corporate debtor.

---

---

Issues Involved:
1. Territorial Jurisdiction
2. Filing and Admissibility of Application
3. Default and Financial Debt
4. Appointment of Interim Resolution Professional (IRP)
5. Declaration of Moratorium
6. Duties of Interim Resolution Professional
7. Communication and Public Announcement

Issue-Wise Detailed Analysis:

1. Territorial Jurisdiction:
The Tribunal confirmed its territorial jurisdiction over the National Capital Territory (NCT) of Delhi as the registered office of the respondent corporate debtor is located in New Delhi. This jurisdiction is aligned with sub-section (1) of Section 60 of the Insolvency and Bankruptcy Code, 2016.

2. Filing and Admissibility of Application:
The application was filed by the State Bank of India (SBI) under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The application was made in the requisite FORM-1 to initiate the Corporate Insolvency Resolution Process (CIRP) against the respondent corporate debtor. The Tribunal noted that the application was complete and there were no disciplinary proceedings pending against the proposed IRP.

3. Default and Financial Debt:
The applicant bank claimed a sum of Rs. 142,95,99,869.65 along with interest due from the respondent company as of 31.08.2018. The Tribunal reviewed the evidence, including the statement of accounts, loan agreements, and security documents, and confirmed that the respondent had defaulted on multiple accounts. The Tribunal noted that the debt qualified as a "financial debt" under Section 5(8) of the Code, and the applicant bank was a "financial creditor" under Section 5(7).

4. Appointment of Interim Resolution Professional (IRP):
The applicant proposed Mr. Vivek Raheja as the IRP, who had agreed to the appointment and provided the necessary declarations, including that no disciplinary proceedings were pending against him. The Tribunal found that Mr. Raheja satisfied the requirements of Section 7(3)(b) of the Code and appointed him as the IRP.

5. Declaration of Moratorium:
The Tribunal declared a moratorium in terms of Section 14 of the Code, which included prohibitions on:
- Institution or continuation of suits or proceedings against the corporate debtor.
- Transferring, encumbering, or disposing of any assets of the corporate debtor.
- Actions to foreclose, recover, or enforce any security interest.
- Recovery of any property occupied by the corporate debtor.

The moratorium does not apply to transactions notified by the Central Government or the supply of essential goods or services to the corporate debtor.

6. Duties of Interim Resolution Professional:
The IRP was directed to perform functions under Sections 15, 17, 18, 19, 20, and 21 of the Code, including managing the day-to-day affairs of the corporate debtor and preserving the value of its property. All personnel connected with the corporate debtor were legally obligated to assist the IRP. The IRP could apply to the Tribunal for orders in case of any violations or illegal transactions by the ex-management.

7. Communication and Public Announcement:
The Tribunal directed that a public announcement be made by the IRP regarding the admission of the application within three days. The office was instructed to communicate the order to the financial creditor, the corporate debtor, the IRP, and the Registrar of Companies, NCT of Delhi & Haryana, within seven days. The Registrar was also directed to update its website to reflect the admission of the petition.

In conclusion, the Tribunal admitted the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, and initiated the Corporate Insolvency Resolution Process against the respondent corporate debtor.

---